Our business offers the combination of a long and successful history, a stellar reputation in the community, and a new location that dramatically increases visibility and access. Tommy’s is not only a cultural fixture in historic McMinnville, it is a consistently viable business with significant potential for expansion.
Primary points of value are:
• Tommy’s is an established brand with a recognizable name that is associated with industry expertise, integrity, and reliability. People in this community don’t say, “bike shop.” They say, “Tommy’s.” They say, “I bought my bike at Tommy’s” and “I gotta drop my bike off for a quick repair at Tommy’s.” The name carries with it tremendous value and an expectation of excellence.
• Opened in McMinnville in 1949 and under current ownership since 1978.
• Only bicycle shop in McMinnville, OR (population: 35,000) and Yamhill County (population: 107,000); nearest independent bicycle dealer 25 miles away in Salem, OR.
• High profile location, 1st and Baker St., carries the highest traffic volume in Yamhill County and benefits from two traffic lights just north of the shop which cause consistent gridlock, providing maximum exposure. Four dedicated parking spaces.
• Building is 2,100 square feet on the main floor (includes showroom, repair area, and parts/bicycle storage) and approximately 500 square feet of basement storage. Lease established in 3-year increments with 4 renewal options at base rate of $2000 per month (with 3% rate increase per year) plus square-footage proportion of property taxes ($178/month in 2020).
• Leasehold improvements of $17k.
• Approximately $40k additional annual profit with 2020 business move and lease. (Cost for new retail space is $3300/month LESS than previous location.)
• Average gross sales for last three years is $437k. Including new lease, there is approximately $122k in discretionary income available to a working owner.
o Outline of discretionary Income:
Current owner compensation: $61,500 (includes wages, health insurance)
Net Profit:$53,000 (average over past 3 years, figuring in expense savings from new lease)
Bicycle product: $8,000 (average over past 3 years)
None of this takes into account the exceptional sales year we are having.
• Gross sales for 2020 through June 30: $306,388, an increase over the first six months of 2019 of $104,400.
• Current inventory is approximately $65k
• Consistently thrived as a business, regardless of the financial climate. Remained a healthy and profitable entity through two major recessions and dramatic changes in the bicycle industry.
Significant opportunities for growth include:
o Longer hours (currently open 5 days a week, 10-5)
o Wine country bicycle tours
o Online sales (we currently have a rudimentary online presence)
o Incorporating a POS system for better inventory control
o Outreach in schools and community events
You don’t have to change a thing here to generate a profit. However, there are changes a new owner can bring that will benefit the employees, the community, and add to the strength of the business.